5 January

Alt-Season Incoming?

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“While this first action was focused on a prediction market, I have to imagine this is the sort of precedent every DeFi project operating in the U.S. might want to pay attention to, particularly if they offer trading services for anything that could be perceived as a derivative product.

Also, as noted by attorney Collins Belton, the actual order published by the CFTC appears to acknowledge decentralization (or a lack thereof) as a factor in its decision to bring an action against Polymarket. In other words, a more fully decentralized prediction market may have an easier time of it.

The CFTC also appears to note a distinction in automated market makers (AMMs) being algorithmically driven, implying that not all AMMs may fall under the CFTC’s registration requirements.”

zkSync is a layer 2 (L2) scaling solution designed to make Ethereum transactions inexpensive and near-instant.

The zkRollup design leads to something pretty magical, which is that, through network effects, zkSync becomes more inexpensive for users as activity on its network increases. That reality stands in stark contrast to traditional blockchains, which become more expensive when demand for their blockspace grows. As such, you can see why a resource like zkSync is so promising as a prospect to scale Ethereum!

Today, zkSync is the 10th largest L2 per total value locked with a $71M TVL according to analytics site L2BEAT. That number is poised to grow as zkSync continues to advance in features and functionalities and more users start migrating to zkRollups for better UX and cheaper transactions.

The coming zkSync token will also undoubtedly attract more liquidity and utility to zkSync. In the meantime, we can start getting L2 experience and preparing for the future by using zkSync in the here and now.”

“The things that make me optimistic basically are more regulatory clarity in the US and globally, which I think could help a ton on institutional adoption.

Basically, every large financial institution I’ve talked to, every large bank, every large investment bank, pension funds, they’re all eyeing this sector.

If jurisdictions ‘feel like they’re getting regulatory clarity,’ that adoption could come in a ‘tidal wave.'”

“CRV, the governance token of decentralized exchange (DEX) Curve.Fi, is extending its five-month winning streak as the battle between DeFi protocols for control leads to a demand-supply imbalance. The token rallied 127% in the final quarter of 2021.

As of Tuesday, about 86% of the token’s $3 billion supply is locked up in various DeFi protocols. The declining liquidity could be attributed to DeFi protocols competing to accumulate CRV to influence the decision-making at the DEX.

One of the major powers given to veCRV holders is the ability to change gauge weights, which determine the amount of CRV rewards allocated to each pool on Curve.’ Thus, yield-boosting application Convex Finance and other DeFi protocols such as Yearn Finance and StakeDAO are luring CRV holders by offering attractive returns on staking. The protocols then deposit the CRV received into Curve Finance and collect veCRV, gaining voting power to allocate more CRV rewards to the pools for which they provided liquidity.

Protocols like Convex are locking up almost 50% of all veCRV, as other protocols are accumulating CVX, the token to Convex. This gives them [Convex] the most governance power to decide where CRV incentives should be distributed.

In other words, more and more protocols are building off of Curve, and an entire ecosystem is emerging, engaged in the so-called Curve Wars.”

“The People’s Bank of China (PBoC) digital currency research institute developed the “e-CNY (Pilot Version)” app, which was available for download on Chinese Android and Apple app stores on Tuesday in Shanghai.

The People’s Bank of China said the digital currency could be used during the Beijing Winter Olympics in 2022.”